Canada | U.S. set to open dairy case against Canada

The U.S. government is preparing to challenge how Canada has implemented its dairy market access under the new North American trade agreement, which took effect on July 1, 2020.

U.S. Trade Representative Robert Lighthizer could announce the enforcement action as early as Wednesday, December 9, according to a U.S. industry source familiar with the matter.

U.S. dairy groups, including the National Milk Producers Federation and the U.S. Dairy Export Council, as well as lawmakers from the northern states have expressed concerns about how Canada allocated its tariff rate quotas (TRQs) under the new trade deal, saying the process favoured Canadian dairy suppliers.

A spokesperson for Mary Ng, Canada’s Minister of Small Business, Export Promotion and International Trade, says Canada is following the rules of the agreement.

“Like all aspects of the Canada-U.S. trade relationship, Canada takes its obligations very seriously. Canada’s administration of its dairy TRQs is in full compliance with its commitments under the new NAFTA,” says Youmy Han, in a statement shared with RealAgriculture.

“Our government will always stand up for our dairy farmers and a strong supply management system in Canada, which ensures the viability of our family farms and the vitality of our rural areas,” continues the spokesperson for Minister Ng.

The U.S. could file a request for consultations — the initial step in the dispute settlement process under CUSMA or USMCA, after which the responding country has 15 days to engage regarding any complaints about perishable items, such as milk, and 30 days to respond for other products. If the countries fail to reach a deal through consultations, the complainant can request the creation of a dispute settlement panel to examine the issue.

Look also

Rising Butter Prices Give European Consumers and Bakers a Bad Taste

The price for the butter so essential to the pastries has shot up in recent months, by 25% since September alone, Delmontel says.

You may be interested in

Ag observer says dairy industry is up against many challenges in the year ahead

Rising Butter Prices Give European Consumers and Bakers a Bad Taste

The shape of things to come: Global dairy markets

Topics |
Canada, dairy case, U.S.

Legal notice about Intellectual Property in digital contents. All information contained in these pages that is NOT owned by eDairy News and is NOT considered “public domain” by legal regulations, are registered trademarks of their respective owners and recognized by our company as such. The publication on the eDairy News website is made for the purpose of gathering information, respecting the rules contained in the Berne Convention for the Protection of Literary and Artistic Works; in Law 11.723 and other applicable rules. Any claim arising from the information contained in the eDairy News website shall be subject to the jurisdiction of the Ordinary Courts of the First Judicial District of the Province of Córdoba, Argentina, with seat in the City of Córdoba, excluding any other jurisdiction, including the Federal.